Investment Profile
Piper Sandler Merchant Banking
PSMB funds provide exposure to high growth companies. The funds seek to provide an attractive return with a lower risk of capital loss and a faster return of capital than other private equity strategies.
| Investment Criteria |
| Industry Focus: | - Companies within Piper Sandler's established areas of industry expertise which include: healthcare, technology, business services, financial technology & services and consumer
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| Late-Stage Focus: | - Commercial businesses with significant revenue streams and a referenceable client base
- Typically at least $10 million of LTM revenue
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| High Growth Companies: | - High growth (20%+) companies with high gross margins and operating leverage
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| Leading Market Player with Barriers to Entry: | - Companies that have built top tier positions within emerging sub-market verticals, and possess technology, IP or other attributes which create barriers to entry
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| Strong Management: | - Talented management teams capable of executing business plans, with aligned equity incentives
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| Transaction Type: | - Focus on late-stage growth financings and growth company control transactions
- $5 - $15 million investment size
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| Security Structure: | - Security structures which protect downside risk while maximizing return opportunity
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| Active Involvement: | - Companies where PSMB has an active role at the board level to guide value creation
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Near-Term Liquidity: | - Companies which should reach a logical point of liquidity within a three to five year time frame
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| Aligned Owners: | - Investments with other institutional investors that have aligned objectives with PSMB
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